Any offence under this Act may, either before or after the institution of prosecution, be compounded by the Commissioner on payment, by the person accused of the offence to the Central Government or the State Government, of such compounding amount in such manner as may be prescribed. As per Rule 162 of the CGST Rules,2017 [Chapter-XIX – Offences and Penalties of the CGST Rules,2017], the application of compounding shall be filed in FORM GST-CPD-01.
(ICAI FAQ PUBLICATIONS 06-09-2017 COMPOUNDING OF OFFENCES: FAQ NO. 42)